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Analyst Meet / AGM - Analyst Meet

Targets domestic loan growth of 15% for FY2018

Bank of Baroda

19-May-2017, 03:33
Bank of Baroda conducted an analyst meet on 18 May 2017 to discuss the financial results for the quarter ended March 2017 and prospects of the bank. PS Jayakumar, MD&CEO of the bank addressed the meet:
Highlights:

The bank has exhibited performance for FY2017 in line with the guided level. The business of the bank has crossed Rs 10 trillion mark end March 2017. The bank continues to stride on transformation journey.
The bank has showed strong other income in Q4FY2017, despite decline in treasury income. Meanwhile, the absence of one-off foreign profit of Q4FY2016, impacted the overall non-interest income growth in Q4FY2017.
The bank did not conduct any sale of non-core asset and still posted strong growth in operating profit for FY2017.
The margins and interest income of the bank was impacted due to interest income reversals of Rs 190 crore in Q4FY2017 and Rs 450 crore in FY2017 on SDR and S4A accounts.
The bank has exhibited healthy improvement in cost-to-income ratio in FY2017. However, the demonetization has contributed some of the rise in operating expenses for the bank.
The bank has continued to reduce NPAs for last four straight quarters. The provision coverage ratio remains at robust level of 57.7% end March 2017. The bank proposes to improve provision coverage ratio 70% in FY2018.
The fresh slippages of advances stood at Rs 4077 crore in Q4FY2017, while the NPA reduction though recoveries, upgradations and write-off was Rs 4001 crore.
Overall standard restructured advance book stood at 2.81% of advances at end March 2017 compared to 4.02% a quarter ago and 3.58% a year ago.
The bank exposure to SDR scheme stands at Rs 6732 crore of which Rs 2750 crore is standard. The exposure to S4A scheme stands at Rs 2279 crore with Rs 2137 crore in standard category, while the exposure under 5/25 refinancing scheme was Rs 6807 crore, which is entirely standard.
The NPA divergence of the bank for FY2016 in line with RBI guidelines was negligible with no impact on provisions.
The securities receipts book of the bank stood at Rs 700 crore end March 2017.
The SMA - 2 category loan book of the bank stood at Rs 8000 crore with non-overlapping part Rs 2511 crore end March 2017.
As per the bank, the top 50 NPA accounts amounts to Rs 15000 crore carrying 50% provisions.
The bank is targeting domestic loan book growth of 15% in FY2018, which his to be driven by retail and SME loan growth of 20%. The bank is also targeting to improve NIMs to 2.5% in FY2018.
The employee count of the bank stood at 51000-52000 end March 2017.